FIN-A0105

Fundamentals of Financial Markets and Institutions

6cr

SYLLABUS
Spring, 2024

Instructor’s contact information Course information

Name: Vesa Puttonen
E-mail: vesa.puttonen@aalto.fi
Office: T303 Ekonominaukio 1, 3rd floor
Office Hours: Mondays 14-15
Instructor’s Webpage:
https://www.aalto.fi/en/department-of-finance/vesa-
puttonen
Academic Year 2023-2024, Period III
Jan 10-Feb 16
- Wednesdays 10:15-12 at Y202a
- Fridays 10:15-12 at Y202a
Language of instruction: English

biz.aalto.fi
Contents:

The course covers the basics of commercial banking, investment banking, central banking, funds, insurance
companies, and financial regulation.

Learning outcomes:

To provide a comprehensive view of financial markets and institutions as well as the developments during
and since the global financial crisis 2008.

By the end of the course, students will be familiar with the concepts of commercial banking, investment
banking, central banking and shadow banking systems; pension funds; insurance companies and regulatory
institutions. Students will understand the roots of the recent crisis and critically evaluate the advantages and
disadvantages of the policy and regulatory reactions to the crisis. Students will be able to read and
comprehend banks’ annual reports and the articles of Financial Times.

Assessment Methods and Criteria:

1. Lectures
2. Final exam (70%), based on lectures and other material distributed (downloaded on MyCourses)
3. Case (30%)

Total: 100p/%

Case ”ESG FUNDS” [group, 2-4 students in a group] PPT-SLIDES

Separate written guidelines provided for the Case.

Material:

• Aktia, Q3 Interim Report January-September 2023.

• Mark Tuchet (2022). European Capital Markets: Where are we?

• European Parliament (2023). Understanding EU action on pensions. (by Marketa Pape)

• EFAMA (2022). Asset Management in Europe. An Overview of the Asset Management Industry. 14th
edition. (pages 1-38)

Course book (Mishkin & Eakins “Financial markets and institutions” 9th Edition) not required in the exam but
you may use it as supplementary material.

biz.aalto.fi
Agenda

Date Topic Mishkin & Eakins

Jan 10 Introduction to the course

Introduction to the financial system Ch 1, 2, 7

Jan 12 The global financial crisis 2008 – 8

“Inside job” ^

Jan 17 Fixing the financial system

European Capital Markets Union

Jan 19 Central banks 9, 10

Jan 24 Fundamentals of financial institutions and commercial banking 7, 17

Jan 26* Sauli Vilén, Inderes

Jan 31 Financial regulation 18

Feb 2 Shadow banking 19, 20, 22

Feb 7 Marko Hovi, Finnish Financial Supervisory Authority

Feb 9 Financial innovations 19

Feb 14 Insurance companies 21

Feb 16 Wrap-up, feedback and exam prep.

^ Before the lecture watch ”Inside job” (2010 Full Documentary) movie (Youtube)

* Deadline for the Case: Friday, Jan 26 at 16:00

Exams:

February 20, 2024 at 13-16

April 8, 2024 at 16-19

biz.aalto.fi
COURSE WORKLOAD (Estimates)

Classroom hours 24 h

Class preparation 22 h
Case preparation 50 h
Exam preparation 60 h
Exam 3h
Total ~ 160h (6 op)

biz.aalto.fi